(Les Echos) The Zaoui brothers arrogate more than $ 100 billion merger

(Google Translation)
The Zaoui brothers arrogate more than $ 100 billion merger

The two former rivals Goldman Sachs and Morgan Stanley, Enthusiasts against Bargains hostile and complex deals, conquered the Peugeot and Bettencourt families and large groups, such as GlaxoSmithKline and Lafarge.

The most famous M & A two former brothers 'enemies' are hands on the European market for mergers and acquisitions. In one year, the brand Zaoui, launched by the two "deal makers" after leaving Morgan Stanley and Goldman Sachs, already appears prominently in the charts in the expensive M & A specialists. Their "boutique" consulting, Zaoui & Co, claims 16% of market share in mergers and acquisitions in Europe with a total of $ 111 billion of transactions advised on 721 billion of transactions reported in January by Dealogic (taking into account all of the GlaxoSmithKline / Novartis operation).
On February 11, after months of silence, Michael Zaoui, who retired six years ago co-director of mergers and acquisitions department of Morgan Stanley, and Yoel Zaoui that of global head of M & A at Goldman Sachs in 2012, have thus a comeback in the European market via France. That day, L'Oréal and Nestlé announced they untie their bonds. While all the rumors were betting on a passage from the French cosmetics group under Swiss flag, L'Oreal buys 8% stake to Nestlé. And the Bettencourt family increases its weight in the cosmetic group to over 33%. Eight days later, their name emerges in the deal that makes the most debate in France: the entrance of the Chinese Dongfeng Peugeot capital. The Zaoui brothers advise the holding family that risk dilution. This one will eventually win a weight equivalent to the capital of the state and the Chinese.
The strategy of "Pac-Man"
Since the strategy of "Pac-Man" (cons-attack, trying to redeem his predator) they initiated together to defend Elf Total face in 1999 against Sanofi and Aventis in 2004, the brothers are masters against the - hostile bids , complex and intricate deals (Gucci PPR and LVMH prey in 2004), most often in different camps (Alcan coveted by Pechiney in 2003, Arcelor Mittal to win in 2006). Their list of January so do not break the rule. Less than two months after having advised the Peugeot family, they supported Lafarge in its merger of equals with the Swiss Holcim. And a few weeks later, they curled their biggest deal by attending GlaxoSmithKline. For $ 57 billion, it unwound a triple operation with Novartis: he yielded his wallet oncology, vaccines classier him and together they created a joint venture

Les Echos : Les frères Zaoui s'arrogent plus de 100 milliards de dollars de fusi

Les deux ex-rivaux de Goldman Sachs et Morgan Stanley, adeptes des contre-offres hostiles et des deals complexes, ont conquis les familles Peugeot et Bettencourt, ainsi que les grands groupes, comme GlaxoSmithKline ou Lafarge.
Les deux ex-frères « ennemis » les plus célèbres du M&A font main basse sur le marché européen des fusions-acquisitions. En un an, la griffe Zaoui, lancée par les deux « deal makers » après leur départ de Morgan Stanley et de Goldman Sachs, apparaît déjà en bonne position dans les palmarès chers aux spécialistes des M&A. Leur « boutique » de conseil, Zaoui & Co, revendique 16 % de part de marché dans les fusions-acquisitions en Europe avec un cumul de 111 milliards de dollars de transactions conseillées, sur les 721 milliards de dollars d'opérations recensées depuis janvier par Dealogic (compte tenu de la totalité de l'opération GlaxoSmithKline/Novartis).
Le 11 février dernier, après des mois de silence, Michael Zaoui, qui a quitté six ans plus tôt la codirection des fusions-acquisitions de Morgan Stanley, et Yoël Zaoui celle de la tête mondiale du M&A de Goldman Sachs en 2012, ont ainsi fait un retour fracassant sur le marché européen, via la France. Ce jour-là, L'Oréal et Nestlé annoncent qu'ils dénouent leurs liens. Alors que toutes les rumeurs misaient sur un passage du groupe de cosmétique français sous pavillon suisse, L'Oréal rachète 8 % de son capital à Nestlé. Et la famille Bettencourt augmente son poids dans le groupe de cosmétique à plus de 33 %. Huit jours plus tard, leur nom émerge dans le deal qui fait le plus débat en France : l'entrée du chinois Dongfeng au capital de Peugeot. Les frères Zaoui conseillent le holding familial, qui risque la dilution. Celui-ci va finalement gagner un poids au capital équivalant à celui de l'Etat et du chinois.
La stratégie du « Pac-Man »
Depuis la stratégie du « Pac-Man » (contre-attaquer en tentant de racheter son prédateur) qu'ils ont déclenchée ensemble pour défendre Elf face à Total en 1999 et Aventis contre Sanofi en 2004, les deux frères sont passés maîtres dans les contre-offres hostiles, les deals complexes et inextricables (Gucci proie de PPR et LVMH en 2004), le plus souvent dans des camps différents (Alcan convoité par Pechiney en 2003, Mittal pour emporter Arcelor en 2006). Leur tableau de chasse depuis janvier ne déroge donc pas à la règle. Moins de deux mois après avoir conseillé la famille Peugeot, ils supportaient Lafarge dans sa fusion entre égaux avec le suisse Holcim. Et quelques semaines plus tard, ils bouclaient leur plus gros deal en assistant le britannique GlaxoSmithKline. Pour 57 milliards de dollars, celui-ci a débouclé une triple opération avec Novartis : il lui cédait son portefeuille d'oncologie, lui rachetait ses vaccins et ensemble ils créaient un joint-venture

>>> Eniro could be taken over by Triton

Eniro could be taken over by Triton 

Triton, the European PE firm, is trying to take over the troubled Swedish directory services company, Eniro, according to Dagens Industri. This comes after yesterday's report in Swedish media that Eniro's creditors are considering bankruptcy for the company which Eniro later denied via a stock exchange announcement.

The Swedish business daily reported, citing sources, that Triton has approached several of Eniro's creditors recently looking to take over some of the Swedish company's loans. One source said that Triton wants a 30-40% discount for the debts but some of the banks may agree on this if they are in a hurry to exit the debt situation. The paper speculated that Triton could possibly then push Eniro into bankruptcy or to conduct a new share issue and this way gain control of the company.

The item noted that Eniro has debts of SEK 2.2bn (EUR 241m) and some of its creditors include Handelsbanken, Nordea, SEB and Swedbank. The paper wrote that some of the company's creditors are concerned that Eniro may not be able to pay off all of its loans.
 


Source Dagens Industri

>>> ES Saude/Fosun offer raised to EUR 5.01 per share

ES Saude/Fosun offer raised to EUR 5.01 per share 

Espirito Santo Saude's Chinese suitor Fosun has raised its bid for the company to EUR 5.01 per share from the previous EUR 4.82 per share, according to a newswire report.

UnitedHealth's rival EUR 5-per-share offer is illegal, according to Fosun, since it was made directly to Rioforte, the Espirito Santo family's holding company, in exchange for its 51% stake in the Portuguese hospital business, the Reuters item said. Fosun lodged its bid through its local insurance arm, Fidelidade, the report added.

Fidelidade has asked Portugal’s securities regulator (CMVM) to review the legality of UnitedHealth’s offer, which it also says was submitted after the expiration of a 3 October offer deadline.

The report noted a CMVM press release issued earlier extended the deadline for ES Saude to accept Fosun’s offer to 14 October from 10 October.

The Espirito Santo family is under pressure to sell assets after requesting creditor protection in July, as reported.
Newswire Round-up

>>> What to look at today - 10th of October 2014

US MArket closed lower after yesterday rebound, S&P is back below its 100d MA...WTI slide to $85.22 -2.4%, -6.8% MTD...VIX @ 18.76 +24.16%, highest level since Feb., The growth concerns weighed on economically-sensitive sectors like consumer discretionary (-2.3%), industrials (-2.3%), and materials (-2.5%), while financials (-2.1%) ended in-line with the S&P, technology sector (-1.7%) ended ahead of the other cyclical groups helped by Apple(AAPL 101.02, +0.22) after activist investor Carl Icahn argued for a larger repurchase program in a letter sent to Chief Executive Officer Tim Cook., consumer staples sector (-0.9%) was the only group to register a loss smaller than 1.6%...Volume @ 874mil shares...US After Hours : HELE +3.0%, CUDA +0.4%, PKT -18.7%, SZMK -13.9%, VOXX -12.5% JNPR -3.9% following earnings/guidance...TSLA unveiled new D Model +0.7% After Hours...Asian indices are tracking the outsized US selloff with moderate declines of their own. Coal names in China were down across the board after overnight announcement the finance ministry is planning to levy a 3-6% coal import tariff on certain types of coal effective Oct 15th. Of note in the property sector, Housing Ministry researchers speculated Beijing is unlikely to ease home purchase limits...Nikkei -1.47% Hang Seng -1.87% Shanghai -0.63%

Eur$ 1.2708 S&P -0.23% EuroStoxx -1.32% FTSE -1.23% DAX -1.15% SMI -0.93%

Macro
- Schaeuble Says German Government Will Review Growth Forecast
- Draghi Says EU Governments Must Take Steps Or Face Disappearance
- Caspian Sea Oil Project’s Leaky Pipes Cost May Rise to $4b: FT
- Zaoui Brothers See Merger Cycle Just Beginning, Les Echos Says
- Weidmann Says ECB Balance-Sheet Target May Lead to Risk Transfer


Keep an eye on :
- BLT LN : Former Xstrata CEO Sought to Buy BHP Billiton Mines: FT
- CLN VX : *CLARIANT COULD ATTRACT INTEREST IN M&A ENVIRONMENT: JPMORGAN
- DAI GY : Mercedes-Benz to recall 10K 2014 C-Class in the US due to steering issues - NYT
- EMSN SW : EMS-Chemie 9-Month Net Sales Rise 7.5% in Local FX to CHF1.49b
- ENRO SS : Eniro could be taken over by Triton
- ESS PL : ES Saude/Fosun offer raised to EUR 5.01 per share
- GIVN VX : Givaudan 3Q Sales CHF1.12b vs Est. CHF1.11b, Repeats M/T Outlook
- GLEN LN : Glencore Falls After Said to Have Explored Australian Listing --> 321.8 in HK -3.36%, flat vs Ldn close
- LEG GY : LEG Immobilien Raises 2015 Outlook, Will Sell New Shrs, LEG Immobilien Places 4.1m Shrs at EU50/Shr
- MS IM : Mediaset may sell Mediaset Premium in exchange for stake in Telecom Italia - Il Sole 24 Ore
- KN FP : Natixis New Overweight on Possible M&A Upside: Morgan Stanley
- OML LN : Old Mutual Said Near Pact to Buy Quilter Cheviot: Sky
- PTC PL : Oi Says Committed to Portugal Telecom Merger: Reuters Link
- TRYG DC : Tryg 3Q Net Beats Estimates as Cost Cut Program Progresses
- UCG IM : UniCredit May Strengthen Presence in Middle East, Asia: CEO
- UL FP : Unibail Mandates Goldman to Sell EU1B Portfolio, Le Figaro Says
- VOW3 GY : Volkswagen Said to Deepen Research Cooperation With China’s FAW

>>> Mediaset may sell Mediaset Premium in exchange for stake in Telecom Italia

Mediaset may sell Mediaset Premium in exchange for stake in Telecom Italia - report (translated)
Story
Mediaset could transfer control of its digital pay subsidiary Mediaset Premium to Telecom Italia (TI) in exchange for a stake in the listed Italian telco, Italian language daily Il Sole 24 Ore reported. The report cited unspecified rumours.

The item noted that Mediaset Premium has an equity value of EUR 900m. The report said that at present share prices this would give Mediaset just under an 8% stake in TI.

The report also cited sources close to French media group Vivendi who rejected speculation that it was looking to increase the 8.3% stake in TI it is set to receive from Spanish telco Telefonica to 20%.

-

>>> Brokers Upgrade & Downgrade - 10th of October 2014

>>> Up
*C&C GROUP RAISED TO EQUALWEIGHT AT BARCLAYS
*CARREFOUR RAISED TO NEUTRAL VS CONVICTION SELL AT GOLDMAN
*LEG IMMOBILIEN RAISED TO BUY FROM HOLD AT BANKHAUS LAMPE
*SPIRENT COMMUNICATIONS RAISED TO EQUALWEIGHT AT MORGAN STANLEY

>>> Down
*BASHNEFT CUT TO NEUTRAL VS BUY AT UBS
*BAT CUT TO SELL VS NEUTRAL AT GOLDMAN
*CARGOTEC CUT TO SELL VS NEUTRAL AT UBS
*GERRESHEIMER CUT TO HOLD VS BUY AT BERENBERG
*PALFINGER CUT TO NEUTRAL VS BUY AT UBS
*SANDVIK CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*SEB CUT TO NEUTRAL VS BUY AT CITI
*TECHNIP CUT TO HOLD VS BUY AT BERENBERG

>>> PT Change


>>> Initiation
*DIXONS CARPHONE REINITIATED BUY AT UBS, PT 425P
*NATIXIS RATED NEW OVERWEIGHT AT MORGAN STANLEY

>>> Call
>> Stock
*AB INBEV ADDED TO GOLDMAN CONVICTION BUY LIST; WAS BUY

NASA Astronaut Says Typhoon Vongfong Like None He Has Seen

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NASA Astronaut Says Typhoon Vongfong Like None He Has Seen 2014-10-10 04:18:43.817 GMT

By Marco Lui Oct. 10 (Bloomberg) -- NASA Astronaut Reid Wiseman posts on Twitter a photo of Typhoon Vongfong taken from space; tweets “I’ve seen many from here, but none like this.” * Link to Twitter: http://goo.gl/ix5qHX * Related story: Typhoon Vongfong Weakens, Turns North Toward Japanese Mainland: {NSN ND7IUY6TTDS2 <go>}

For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}

To contact the reporter on this story: Marco Lui in Tokyo at +81-3-3201-8963 or mlui11@bloomberg.net

To contact the editor responsible for this story: Go Onomitsu at +81-3-3201-8965 or gonomitsu@bloomberg.net

>>> US After Hours

After Hours Summary: HELE +3.0%, CUDA +0.4%, PKT -18.7%, SZMK -13.9%, VOXX -12.5% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: HELE +3.0%, CUDA +0.4%

Companies trading higher in after hours in reaction to news: APT +19.6% (continued strength on Ebola concerns), SCMP +19.2% (announced settlement agreement that resolves patent litigation in U.S. related to AMITIZA), ALXA +16.8% (provided update on ADASUVE U.S. Commercial Progress; Alexza shipped 32,278 units in the third quarter, completing the ADASUVE initial product inventory stocking), CVEO +17.3% (Greenlight Capital disclosed 9.99% active stake in 13D filing; urges co to take on leverage and replace CEO Bradley Dodson), GSAT +3.8% (offered rebuttal to Kerrisdale's allegations, highlights 'flawed assertions and mischaracterizations'), EXAS +3.7% (confirmed that CMS issued its final National Coverage Determination for Cologuard, making it the first FDA approved stool DNA test for the detection of colorectal cancer and precancer covered by Medicare), ECOL +2.5% (to replace MEAS in the S&P SmallCap 600), OXLC +2.1% (adopted repurchase program of up to $35 mln worth of common stock)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: PKT -18.7%, SZMK -13.9%, VOXX -12.5%, MCHP -8.7%, KN -8.1%, JNPR -3.9%, JOEZ -1.0%, FDO -0.9%, ANGO -0.1%

Companies trading lower in after hours in reaction to news: GTAT -24.0% (co is looking to close down its saphire business, according to court documents released today), SM -2.0% (sees Q3 production of 13.1 MMBOE, or 142.5 MBOE/d, at low end of previously provided guidance)